Photo Credit: Singapore Airlines' home and hub at Changi Airport. Singapore Airlines
Strong demand cushioned many of Asia-Pacific’s largest carriers from a brutal fuel shock, but Q2 exposed how little room there is for error when costs rise faster than revenue.
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Airlines across Asia-Pacific entered the second quarter facing two forces pulling against each other.
The Iran war that began on February 28 closed critical Gulf airspace and redistributed global connecting traffic toward hubs normally competing with Dubai, Doha, and Abu Dhabi.
The conflict handed carriers from Seoul to Singapore passengers they hadn't planned for, but it also drove jet fuel to prices no one had budgeted for going into the year.
Five of the largest Asia-Pacific carriers have now reported for the quarter. Revenue growth was strong at all of them, in some cases the strongest on record, with four key factors influencing the results:
Korean Air is a clear example of how a strong quarter and a bad qu
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Tags: cathay pacific , earnings , iran war , japan airlines , jet stream , korean air , singapore airlines , trump effect
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